By using the financial statements of a similar retail business it is possible to review the key assumptions and ratios used in the financial projections of a startup retailer.
Our financial projections template requires a number of key assumptions. Some of these financial projection assumptions such as the interest rate, and income tax rate are specific to the particular circumstances of the business, however others, including gross margin %, accounts receivable days, Inventory days, accounts payable days, and other liabilities days, can be estimated using the published financial statements of other businesses.
All financial projections are based on business plan assumptions. Listed below is a selection of the important assumptions which need to be considered and decided upon when using the Financial Projections Template to produce the financials section of your business plan.